The United States financial industry watchdog warns of cryptocurrency scams
The Financial Industry Regulatory Authority (FINRA) has released its annual report, cautioning individuals about the risks associated with entering the cryptocurrency market. The report emphasizes the presence of malicious scammers and hackers who exploit low market-cap assets to deceive investors. FINRA states that bad actors engage in manipulative schemes similar to those found in the equities market. The regulator also notes that disparities between centralized and decentralized exchanges may provide an advantage to malicious actors. Chainalysis recently highlighted the prevalence of approved phishing scams in the crypto industry, where victims are deceived into approving malicious blockchain transactions.
Alarming volume of crypto theft
Anti-scam platform Scam Sniffer revealed a significant volume of cryptocurrency stolen in 2023 due to sophisticated phishing scams. These Wallet Drainers stole nearly $295 million from approximately 324,000 victims. While hacking attacks have a widespread impact, the community usually responds quickly. However, Scam Sniffer notes that airdrops, organic traffic, paid advertising, and hijacked Discord links are not easily detected.
Hot Take: Exercise caution in the crypto market
As the cryptocurrency market continues to grow, it is crucial to exercise caution and be aware of the risks posed by malicious actors. Scammers and hackers are actively targeting investors in this space, using manipulative schemes and exploiting vulnerabilities in both centralized and decentralized exchanges. The prevalence of approved phishing scams serves as a reminder that vigilance is necessary when engaging with blockchain transactions. To protect yourself and your investments, stay informed about potential threats and adopt security measures recommended by trusted sources. By remaining cautious, you can navigate the crypto market more safely and confidently.
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